Prospective borrowers were busier during the holiday week completing applications for a new mortgage. Both refinancing and purchase financing activity accelerated.
The Market Composite Index for the seven days that concluded on Oct. 13 moved up 4 percent from the preceding week. The index was adjusted for Columbus Day.
However, when no adjustments are made for seasonality, the index — a representation of retail residential loan applications — tumbled 7 percent from the week ended Oct. 6.
The Mortgage Bankers Association reported the index based on its Weekly Mortgage Applications Survey, which reportedly covers more than 75 percent of all applications.
Applications for loans to refinance an existing mortgage rose 3 percent from a week earlier. The boost came despite that refinance share thinned to 48.6 percent from 49.0 percent. In the week ended Oct. 14, 2016. refinance share was 61.5 percent.
MBA reported that applications for loans to finance a home purchase
climbed a seasonally adjusted 4 percent. Without seasonal adjustments, purchase-money activity dropped 6 percent from the prior week but jumped 9 percent from the same seven days in 2016.
Applications for home loans insured by the Federal Housing Administration made up 10.4 percent of the latest total. FHA share was slightly wider than 10.3 percent the previous week but thinner than 11.3 percent twelve months prior.
Consumers who applied for mortgages guaranteed by the Department of Veterans Affairs accounted for 10.5 percent of all applications, not as much as the 10.6 percent share in the last report and far thinner than the 12.8 percent share in the year-earlier report.
The report indicated that adjustable-rate mortgage applications accounted for 6.1 percent of all activity. ARM share was more narrow than
6.6 percent in the last report. Still, ARM share was more broad than 4.1 percent in the same week a year ago.
According to the trade group’s data,
interest rates on jumbo mortgages were a basis point lower than conforming rates. In the last report, jumbo rates were 5 BPS less, though there was no change in the spread from the same week last year.
